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MND NewsWire features plain and simple interpretations of industry related data and events written in a manner that maintains the interest of random readers while still catering to the perspective of a housing market professional.

There is beginning to be some organized resistance to real estate offices that
offer "unbundled" or less than what has come to be accepted as "full
services" to their customers.

These limited service offices come in a variety of configurations (which we
will explore in detail next month), but, as mentioned in the past, some of them
have been sued by local real estate boards for practicing without a real estate
license. These lawsuits typically target websites that collect a fee for advertising
homes that are for sale by owner (FSBOs), and have not been
particularly successful. Courts in several locations have ruled that these sites
are merely using updated technology to do what newspapers have done for decades,
also without having a license.

Another less than full service variation, flat fee MLS listings,
occurs when a real estate office signs a listing agreement solely for the purpose
of putting, for a flat fee, what is essentially a FSBO into the local multiple
listing services (MLS) database. Anti-trust rules have, for many years,
precluded MLS from refusing valid listings from member brokers and from withholding
membership from otherwise qualified (i.e. licensed and willing to pay MLS fees)
agents.

More traditional agents have become increasing aggravated by this practice
which, first of all, takes away the competitive advantage MLS membership
has long conferred. It also forces full service agents into the position of
dealing with a non-professional on the other end of the transaction. This can
have serious repercussions for the selling agent if the homeowner is not making
full or accurate disclosures about the property or violates fair housing standards.
There is a good deal of comfort in having another professional, also with a
license at stake, on the listing side of a deal.

An MLS listing guarantees cooperation with agents working with buyers, but
does not guarantee compensation. An agent showing these FSBO listings has to
be prepared for the possibility he will have to collect his commission from
his buyer; always an awkward situation.

Now, however, it is getting interesting. On one hand, Congress is making noises
about the National Association of Realtors and various local boards that operate
MLSs opening up the playing field. On the other hand, at least three states
have stepped into the fray with laws or proposed regulations that would put
an end to the "MLS only" type of listings.

Illinois passed a law last year that sets minimum service standards that agents
must meet. The minimum, I am told, is presenting the offer. Legislation has
now been introduced in Iowa that would require agencies to accept and present
offers and counteroffers to clients, participate in negotiations, answer client
questions and give access to properties they have listed. The Texas Real Estate
Commission is also proposing new rules to require some minimum level of service.

And in Massachusetts, the largest MLS in the state has come up with an interesting
solution of its own. MLS members are no longer allowed to the phone number of
their sellers on listing sheets. While this complicates the lives of agents
in a state where it has long been the practice to set up appointments directly
with the homeowner, it certainly does require a minimal level of service from
flat-fee listing agents, even if it is just answering the phone.

Comments

The internet has certainly leveled the FSBO market playing field, no doubt. The NAR thinks that the FSBO market is no threat, yet is spending millions of dollars on national ad campaigns designed to scare home sellers away from going it alone. As a for sale by owner print and internet advertising service in Massachusetts, we have found that private home sellers do need exposure, but do not need MLS to sell successfully without an agent.

Kristina

on

The real estate industry needs to accept the fact that it is time for an overhaul. Most listing brokers will stick your home in the MLS, on thier own website, and in the newspaper and wash thier hands of you until a buyers agent calls. Sellers dont need to pay thousands of dollars for that. Realtors have gotten away with robbing people blind for long enough.

flatfeereport

on

If you read some of the dumb comments on known real estate news sites about how flat fee brokers are these horrible people, youd clearly see why the DOJ and FTC are after organized commission monopolies.
Without exception, commission protectionists seem to conveniently ignore the fact that many people DO NOT want the protections realtors offer. That is why lawyers are available.
The DOJ is unlikely to back down and they will prevail.

Mary

on

As an attorney, I feel that the only problem with this is the potential problem with the realtors commission. The agent fills out the listing form and the purchase and sale agreement and perhaps the disclosure form. If the agent dealing with the layperson doesnt like the transaction, they can walk away. Frankly, why should a realtor have a fixed 6% fee wich amounts to an average of 20,000?

merrymix

on

I have been a Realtor for over 30 years and I have never seen the business sink so low as since the Fee for Service Agreements have become commonplace. Designations? Who cares? -- Continuing Education -- Why? -- We have become like prostitutes who are willing to do anything to make a buck. Representation has gone out the window.

Frank

on

I think the commission should go to the person who did the work. If the homeowner does the work, then he should keep the commission. Realtors just list the home on MLS, and then wait for someone else to sell it. That is wrong. Why should homeowners pay for a service they actually dont receive?

joe

on

I was one of the top listing agents in the country-still am. I give the same service I just do it for a flat fee instead of making Cendant 1.5%. Realtor prostitutes? They always have been always will be. The article has nothing to do with reality. 10% of agents make money –the rest are scrambling. I feed them with listings to sell. They just need to find buyers.

joe

on

So while I do flat fees by the hundreds, I put them on the market (when they were not there before) so the good realtors can get their commission. I also make it more affordable for the buyer and more profitable for the seller. Who loses? The lazy lister...
I have no one to apologize to. So the next time the realtor complains-they can do it in a Christmas card when they cash the commission check from the house I put on the market.

joe

on

1. There is no guarantee the listing agent is qualified for anything than passing a 100 question exam, and it is highly unlikely the listing agent is any more qualified to handle a transaction than the owner.
2. Agent boycott?
a. no-they may complain but the are prostitutes and have no loyalty. And will walk over each other for a commission.
b. it is illegal to boycott-shows they have no qualms with breaking their oaths as realtors or federal laws.

joe

on

Tell me, who will pay me $12000 to list their $300,000 home? I will do it. It will take me an hour. I will sale it in a month and you will lose $21,000 (buyer’s side). Or you can pay me $300 for my hour, offer a better price, sale your home in 2-3 weeks, put your savings back into the economy or your kid’s college. As George W. says “It is YOUR money”! And we all know he would not lie to us…..

rnamro

on

I am an owner of several properties, i know all there is to know about selling and buying, my only disadvantage is i do not have a real estate/broker license and do not have access to the MLS. Now (online), i can search MLS listings, lookup city assesors detailed info & historical sales info, why on earth would i want to pay $20K every time i make a purchase or sale. It is about time we can level the market and all of those realtors might have to find other productive jobs.

anonymous

on

I am a real estate broker (9 years experience) and I see no problem with flat fee services. If a person wants to handle the sale of their own home, why not? Why should they have to pay for an agents large support staff just so the agent can advertise they are top producers. I welcome competition, it makes us all sharper. I am anonymous because I would be a target of abuse from other realtors if they knew I did flat fee services.

Jerry

on

As we all know (whether everyone likes it or not is another conversation), commissions are negotiable. I assist my clients in selling their homes as far as 300 miles from my office. As their listing agent, I still provide all of the services a "full service" agent does with the exception of the open house (for obvious reasons). I make a very good living, and in return, my average client saves between $5,000 and $8,000 in commission.

Evelyn

on

How do you start a Flat Fee MLS Business. I search online everywhere but have not found any information. I would like to start a flat fee mls business because I've have used it on several times and it really works. If anyone can help I would gladly appreciated. Thanks.

Tom

on

HomesByOwner has a service which can let you easily start a FSBO oriented business in your local area. They have around 150 affiliates around the country, and offer an exclusive local metro area to mortgage brokers, real estate agentsbrokers, or FSBO magazine publishers for a set monthly fee. About a quarter of their sites are owned by real estate agents offering some form of non traditional or flat fee offering.

Jane

on

As a home owner I really do not care about this issue. The simple fact is I saved alot of $ by using a flat fee realtor. I used mlsisland. I think its the best one for Long Island & Queens. There are others but this one worked for me.

They put you on MLS and 15 websites and send all the calls to you so you can sell your house for something less than $400 bucks and the best part about it is they give you UNLIMITED MLS so you can take your time.

Dana

on

This business changes daily from market conditons to legal issues etc. A home is on of the largest investments my clients will ever make and I won't leave it to the chance of some yay-hoo who watched flip this house and now thinks they know all about real estate!The seller does have choices, great!However,I also have to make a choice on whether it is in best interest of my client. After all, when the transaction closes if my buyers aren't happy it's me who has to deal with the consequences!

Dana

on

Kristina, Does your real estate lawyer know about pricing trends, inspecitons, pre-approvals, will they show the property, marketing, proper negotiations, highest and best use of the property, what kind of market are we in and on and on.You see, selling a home is more than just a contract. Just because you are a pro in contract law does not mean you know how about the many other aspects of real estate and how to get the best value for your seller.

Dana

on

Flat fee report guy..as an attorney, you should know that the agent does NOT fill out the seller disclosure form, the seller does!

Dana

on

I agree with Mary.... Heck I'll just throw up some poo-dunk website charge the seller a $1 to enter in the mls, have the seller sign a contract saying I'm not liable for anything that happens (cuz of course I dont care about the liablity of the agent on the end either). What the heck do I need a real estate license for??? No standards.... No nothing.....

Dana

on

Tom,

"The simple fact is that I saved alot of $ by using a flat fee realtor".

A lot of these "flat fee", "discount", "limited service" what ever you want to call them her today gone tomorrow brokers do not service your home for optimum results whether they say they do or not. So the question you should be asking yourself is how much money did loose?

gwen

on

Well, my husband and I have sold our home several times ourselves without the aid of realtors. Each time we sold we ran lengthy ads in the paper and had way more activity than we did when listed with an agent and sold in a very short time. Now my sil and daughter with new baby are trying to sell by owner, live on a side street, neeed MLS and lower fees. I am for flat fee MLS.

Don

on

I used BrokerDirectMLS.com to sell my home in Texas. They charged me $499 and the service was fantastic. I had my home listed with a national franchise for 6 months and they did not sell it. Also, their service was terrible. BrokerDirectMLS.com told me the truth, that the key to selling a home was all about the listing price and getting it listed on the MLS. I was able to lower my price by using a flat fee company and my home sold in 2 months. I do not know why anyone would pay 6%.

Ken

on

A random search brought me to this forum. Lots of interesting content about people's homeselling experiences. As a flat fee limited service provider with over $400 million in customer sales, MLS4owners has run into many of the situations described above and has been lobbying to protect the consumers' right to choose around the country and in Washington. If you have observed anticompetitive activity in the real estate industry, drop us an email and let us know.

Tom Meyer

on

Some licensees who charge percentage fees provide "limited service" when compared to licensees who use technology, education, skill development, and marketing closer to potential. The so-named Limited Service is a fantastic business model. The term is a misnomer because the amount of service procured is in the eye of the purchaser of the service. It's all real estate service.

Lee Thurburn

on

As the President of the largest Flat Fee MLS Broker in Texas, and having listed over 700 homes in Texas during 2005, I can report that the general public is becoming much more understanding of the concept of Flat Fee MLS, or FSBO MLS, services than in the past. There is no doubt that the future of real estate will include a much greater acceptance of the model of providing services. Flat Fee does not mean Limited Service. We charge for services provided on a hourly basis.

Jim

on

Seller using FSBO or Flat fee will be a necessity in the future.
Realtors need to adjust and adapt to changing times. The information highway is educating the consumer. You must further understand with interest only loans, and the new 40 year loans at 100% LTV equity positions will change substancially in the next 5 years. People will not be able to afford professional realtors if they wanted too. I am a Full service broker, flat fee, and offer FSBO assistance. The bus is comming through.

James Gilmet

on

People are changing, today they prefer to shop, or shall I say gather information on the Web. They have a pretty good idea what they want before they leave their homes. Today, over 50% of the people preliminary shop for homes on line, and 30% get mortgage information online. Insurance companies are moving the middleman out "Progressive. Geico. etc." To survive you must find a blend with Electronic Commerce, and Professional interaction.

Vern Callero

on

Flat Fee MLS is here to stay! The Department of Justice of the United States does file lawsuits for fun. NAR can spend all the money they want on national ads. The consumer will decide and this is just the beginning. If you're an agent adapt, compete or fade away.

Todd Kolber

on

Flat Fee MLS is what I recommend along with offering 2% to the selling office for those sellers who think they have the experience necessary to negotiate with an experienced realtor representing the buyer. Why shouldn't that option be available to someone who believes that is all the service they need for the transaction? The internet is creating changes in the real estate industry. Those that resist the change will end up like the old horse and carriage workers, bitter and unemployed.

CaptainFSBO.com

on

The flat-fee revolution is only just beginning! The reason why NAR is spending millions to scare the American public to sell with a realtor is so obviously self-serving it's funny! Most consumers see this for what it is- and their advertising will only increase a discussion on this topic. Agents- Compete, Adapt, Serve, or Move-On!

Milan Cole

on

It's really is a revolution in the making... the Internet is like one giant MLS, and the potential for this to continue to drive down commissions in the real estate makret is huge. I think this kind of service has a tremendous future, and the lobbies in some states to mandate minimum services is totally protectionist behaviour.

Mike

on

30 to 40 years ago 6% of a $70,000 home may have been reasonable compensation for a licensed "professional" (most are part time aren't they?), but 6% of $400-$500,000?? I think not. Unless they come out with a graduate degree requirement. And, as a challenge to ALL professional realtors, how many hours do you spend designing the right marketing campaign for each home? Oh, another agent found it in MLS and sold it for you. Thanks.

Neicy

on

Some of you forget that you can be a REALTOR and have a flat fee real estate brokerage. Also, a lot of listing agents think all you have to do is put a house on the MLS and it will sell. Not true! In the current state of the market, a lot of agents will get out because they do not know how to actively market a home.

WaHomes

on

Mike - I actually do track my hours (although I am not a flat-fee agent) and have found that I spend at least 21 hours marketing a home (that sold in 3 days) and at most 113 hours (between open houses, flyer distribution, showings to buyers, contract presentation/negotiation, escrow management). And yes - another agent did find a buyer and sell it for me - because I referred my buyer to them as I refuse to perform dual-agency services. BTW - my average cost? At least $1425 - at most $3700.

Neil Sundberg

on

I can appreciate that many Real Estate agents work hard to become well educated in their field and over time they would develop a wealth of useful experience that could be quite useful to prospective homesellers like myself. But I would far prefer to pay them by the hour. What would a reasonable hourly fee be to pay a Real Estate agent? I would think maybe some agents might like that idea too since they would be guaranteed payment whether there was a completed transaction or not.

jennifer

on

I'm a seasoned broker in the conservative Midwest. We're experiencing the limited service agency trend and I am all for it - but admit that I am seeing "anti-trust" activity everyday. I want consumers to know that they can be represented in a way that fits their needs. Today's buyers and sellers are educated and savvy. They deserve options - real estate is not a "one size fits all" approach that has been the standard in the past. If I tried to sell my home today guess what option I would choose?

my2cents

on

Flat fee listing is great for people who choose it. The realtors still have a chance for commission. A property owner must have a reason for FSBO - perhaps the "traditional" realtors have failed to bring them an acceptable offer?
Realtors who insist on sticking with "tradition", who dislike competition so much, who can't keep up with changing times, better change to a profession where there is no competiotion.

Wholesale Marketer

on

I market private wholesale properties to investors in the US and Canada. I was recently contacted by the Georgia Real Estate Commission. She basically stated that It's illegal to market a property that you don't own. However, she's not able to provide me with the By-Law stating this. I recommend that All Real Estate Agents open their eyes to what the Real Estate Commission is trying to do. They want you to stay in bondage. Take my advice and get trained in wholesale Real Estate marketing.

Pat

on

I am listed with a discount broker who has been extremely helpful in the market. In order to make my listing more competitive, I've agreed to a 3% co-op. Today I rec'd a call from a remax agent that asked several questions incl who I was listed with. When I told him, he flat out stated "oh, that's a discount broker - we can't show those listings" Too bad for the public that has this guy looking out for his/her interests.

Brent

on

Ten years from now most people selling their home in Texas will cut-out the listing agents 3% fee and use these flat fee listing services. If an agent can not sell a house, then they need to find another occupation anyway. This will weed out the "non-closers" and thats good for everyone in the business.

Pete

on

Anyone who thinks that flat fee real estate is not the way of the future needs to wake up! I am a flat fee broker, I also offer full service listings to sellers, and compensation is REQUIRED for buyers agents in the listing agreement. All we're doing is offering the consumer choices, just like every other industry out there. Remember what happened to the travel agent? They got KILLED by the online travel agency. So for you brokers who are resisting the change, prepare to bury your business.

Stephane

on

I'm a new salesperson (In Canada) in the biz and I have no problem cooperating with FSBO or discount brokers. "The times they are a changing", the dinosaurs better adapt or fade away.

Ryan

on

I tried selling my home with a couple of these FSBO on MLS listings websites. The most important thing I learned is they are not all the same. I listed with one and had a horrible experience. Reaching anyone at the company was a nightmare, they really offered me no service. So i cancelled and was able to list with another company. They were always available by phone to answer my questions and helped me sell my home in a couple of weeks.

Mike

on

Hi,
I sold my house with a flat fee broker and may I say I will never think of Paying Centurty 21 so much money ever again ! !
Thanks MLS Island !

Gary & Denise Moody

on

My wife and I own the largest flat fee real estate company in Michigan (Greater Michigan Realty) and we feel so good about what we do for both sellers and realtors. We save the sellers thousands of dollars. We make realtors thousands of dollars, by making available (via the MLS) FSBO properties that a realtor with a buyer would have NEVER found without our service. It is tough times in Michigan and we are helping the economy by helping people. Everything we do is 100% legal and ethical!

Andrews Flat Fee MLS

on

Very Interesting, I think flat fee MLS is the future on real estate.

chris

on

I am in the middle of trying to sell a house and listed with a flat fee firm. In 4 months I have had zero showings by local realtors despite the fact 100 work our town (9,000 properties.) Its a teardown/new construction in the $1,200,000 range which is typical for our town as it is located near Chicago. I am offering a 3% commission. We had almost 40 realtors for their open house (w/food) and all indicated the house was priced well. They definitely are skunking us without a doubt.

Mary Ann

on

We are one of the first Flat Fee MLS companies in the U.S. After hundreds of listings sold through this program, and a network of brokers nationwide who have gained respect through hard work and ethical dealings, the business model is proven. If you have a reputable broker (who are the only ones who stay in the business) this is the way to go. The majority of listings do sell, and sellers are our best advertisement. Proof? We were featured on NBC30. It works.

MLS Listing FSBO

on

Flat fee MLS listings work, plain and simple.

Maria E

on

Help please, I would like to start a flat fee MLS service, Can anyone tell me what I need to do? Licensed? Salesperson vs Broker? Any information that you can give me I would appreciate. Thank you

Christine

on

Wow, am I glad I found this website. I live in an expensive area in NJ. My home appraised for 1.3 million and the first Realtor told me her fee was 5.5% rather than the standard 6%. A second Realtor came in at 5%. You do the math. Plus, in NJ there is a Realty Transfer tax that will cost me about $16k at closing - plus whoever buys my house has to pay a "mansion" tax of 1%. For me, it's close to $100k right off the top with the commission. No thanks.

mari

on

i am from the UK and in UK the commission is max 3% for sole agency, or 1.5^ to 2.5^ for joint agents - that means that whichever agent sells gets the money - not both...
u recently sold land in taos mew mexico and was hooirified that the agent wanted 10%... and 6% for a housesale!!! wow

kipp

on

You get what you pay for!
I've never had a seller so much as suggest that I wasn't worth every penny of my earnings...on account of representation, careful consultation, time savings, and most of all, the positive impact on their bottom line.
Get top dollar using an expert who knows the market. Especially in a cool market. Don't undersell yourself. There's a lot more at stake than a commision for a job well done.
You get what you pay for!
Respectfully, Kipp (chicago agent)

spk

on

I read with interest all comments. I have been a professional with RE/MAX for ten years. I am a full service broker and can't imagine working for less than I am paid. My investment of time, experience, market knowledge, negotiating abilities, dealing with insepctions, lenders, attorneys and all involved parties requires a remarkable investement of time and my money. After all expenses incurred to offer the service I do, I earn every penny. The public gets what it pays for or just gets lucky!

Laura

on

Flat Fee is here to stay - we offer full service, discount service and flat fee in the st louis area - we let the seller choose how they want to sell their house - and we give first rate service! Just because a company doesn't charge a fortune is no reason to down them - of course there is a new kid on the block offering free mls listings - they are not in missouri yet, but they will be.

Bill Brynelsen

on

I have a quick question for the author of this article and the traditional real estate agents that have posted a comment. "I have a broken typewriter, does anyone know where I can get it fixed or buy a new one? I hope you get the point! You change or go out of business! I won't waste much more time on this except to say this. Traditional real estate companies and their agents are doing nothing more than rearranging deck chairs on the titanic!

Craig Davidenko

on

Ok lets all calm or should I say "com" down?! Denial, some people think that certain things last forever.however those people eventually learn the plain and simple truth.many many years ago the dinosaurs romed the earth alongside real estate brokers and agents who held the "holy grail".."the mls book" but then came along came the world wide web.dinosaurs extinct and brokers and agents wondering when people would notice that they in fact did not hold the "mls" anymore.

Denise

on

Having a middle man do your negotiating is great if you have a substandard product (I'm thinking of the car I traded in instead of sold myself because I couldn't honestly say it was a good purchase!). I've sold 4 houses and the easiest sale by far had no middleman - I worked directly with the buyer. There is still a need for realtors to help people who do not want to be bothered with selling their house. But for those of us who understand how this works, let us handle the sale ourselves.

anonymous

on

Flat fee MLS is useful for the many for sale by owners who just want to sell their homes without having to pay a good amount just to list their homes.

Anonymous

on

I'm commenting late in the game here.. but I wonder if the agents who state they "can't show a disocunt listing" realize they're in violation of the law. They can not only NOT refuse to show a listing, they can't threaten to boycott, either. What seems to be completely lost on the agents is that all the flat fee brokerages are doing is opening up MORE listings for them to sell, and earn a commission from. It's nothing more than when a FSBO offers commission to a buyer's agent. Duh.

Richard Poppe

on

A former President of the Salt Lake Board of realtors said in a broker meeting in 2002, "I promise you that ten years from now there will be NO LISTING AGENTS. If you plan on being in business, you'll need to open your eyes right now and see what's going on around the rest of the world. Companies will be doing business very similar to the way Richard's company (Fidelity Realty) is doing business right now." Flat Fee Real Estate.
In 2007, Fidelity Realty's one office sold more homes (229) than most individual offices of Colwell Banker, Prudential, Re?Max and manny others. That's double the business from the year before. This January 2008, Fidelity is on track to realize 4 times what they nsaw last January.
The public will drive this movement because the public owns the real estate not the "Industry".
You can see broker statistics at www.fidelityutah.com

Anonymous

on

Full service listing agents are on there way out and not soon enough. SELLERS, ask your full service agent this question: "Out of the last 5 buyers you worked with, were did you find there homes?" More than likely all 5 homes were found through the MLS, but they dont want you to know this. They want you to believe that they work so hard. Sorry Full Service agents, but the sellers are smarter these days. It's to bad the MLS still isnt in book form. This way you could put it in a breif case and handcuff it to your wrist to protect your commission.

Eric Henderson

on

I think this post is very short sighted.. I own and run a brokerage in Kansas - we have full service and flat fee options - but we do provide most services of full service traditional 6 ot 7% guys out there... We get our share of traditional listings as well at these higher rates. We have a flat fee option, which is perfect for many of our customers who either know how to negotiate, are professionals themselves and at lease think they know, are attorneys, are bankers or just families who may not even have the equity due to recent purchase and now a job transfer or lay off... We provide a way for these people, of all sorts, to list their home on the MLS through a regular brokerage, and get featured listings on REALTOR.com as well as into the IDX data feed on all the other local broker websites... we also publish these listings in the local home magazines... a lot more than some of my competitors that are "limited service" as we also schedule showings and put a real electronic mls lock box and yard sign out... are we crazy? Perhaps - but the last time I checked, this was America and the Dems and Libs out there have not made us a social republic where the free market can not really be free... I'll probably get heat for that comment... but seriously - the thing that really makes our country great is the ability for anyone here to start a business, create new things, and compete... be it an invention of sorts or in a regulated service industry like real estate. I love what I do - I figured out exactly how much it costs me to take a listing and market it properly. I've created systems to streamline things and this is basic business skills 101 - you compete... I compete with price and options not available to sellers from the brokerages that charge huge transaction fees to their sellers agents or who have to pay huge royalties to franchisors. I was a loyal C21 guy for a while - then they ticked me off and lied to me... now I am independent and taking all their business... and still making a 6 figure income with less headaches.. the change forced me to reevaluate my business and what it took to be in business as a REALTOR... I figured it out - set a reasonable price for my efforts and out of it was born a $500 flat fee service - 500tolist .

Pretty simple really... for those big brokers out there worried that we are providing less service or not helping out clients at all... please chew on this for a moment... when you close a house - you typically spend money on closing gifts for your sellers and buyers... well - my sellers give us closign gifts and send on average 3 more sellers to us the same year, plus we get the buyers for all our houses...

Perhaphs you might need to rethink your commission splits as well as I also give my agent upto 95% with very little overhead, and no crazy nickle and dime techniques... we streamlined our services, made it clear and easy for the average person to understand real estate transactions, then found office space that was affordable and we dont over spend on anything - like ridiculous extravagant parties where other realtors get drugged and loopy with booze... we are a serious group that loves to support our community by offering an alternative.

So sue me... we use the same contracts as the rest of the area here, provided by the board. We have everything we need to launch in other markets as well...perhaps if we found another broker in your area that likes having business, even in down markets, we'll license our in-house developed software (yeah, we got sick of the junk being pushed to us by vendors at trade shows and national conferences - so we hired our own team of programmers and graphics artists... developed our own MLS IDX Search site with tracking, paging, drip email, favorites, mapping, directions, etc...)... You just never know what can happen when you are forced to make a decision to either stick with the old status quo or try something new - and when you do decide new isn't always as bad as others who have something to loose might make it out to be - you start to get creative and whammo - a new idea or way to compete is born - and in America - this is what makes us great - you can act on it and reward yourself for your efforts and ideas, and make an honest living..

Now, for those out there that are listing in the MLS and not offering any compensation for buyers agents - shame shame.. you should at least offer something... we try to get 3% out here but some sellers cant even afford that so they fill in the form and we take care of it... of course it is well disclosed on the MLS exactly what a buyers agent should expect - I have yet to see anyone tell me they do not want to offer a fair compensation to a buy agent should an acceptable contract come in... -Eric

Sonny Jo

on

As a Realtor and loan officer in Southern Calif I would like to let you know the MLS I belong to requires compensation to the buyers agent for a proeprty to be listed on the listed on the MLS. The seller can choose a percentage of the sale price or state a fee. I think this a great idea. The buyers a gent knows exactly what they are going to get paid. The sellers and buyers are much more knowledgeable than in the past. Also, knowledge is pretty easy to come by on the internet. I think flat fee listings are great. Most "Flat Fee" companies have a list of prices for providing other services. As an agent I have decided I want to stay in the business and to be successful I have to change with the times.

Denise

on

Ok.........for those of you who don't understand a "full service" agent's reluctance to show a "limited service" listing....let me clue you in. You are right to say that it is illegal not to show these listings or to boycott them in anyway. However, at least here in New Jersey, the "limited service" or "flat fee" listings have no agency signs on the property...the sellers can keep their FSBO signs. The sellers are also allowed to sell the home on their own, and owe nothing but the flat fee they already paid. So here is the scenario that scares the "full service agent". You take Mr. and Mr. Buyer to see 30 or more homes (because the inventory is through the roof, and they want to see EVERYTHING). You come to the limited service listing with the bright and shiny FSBO sign on the property. Next thing you know, your buyers have disappeared and the "limited service" listing has been withdrawn. What happened?? Your buyers went back after they left you....figuring they would just deal directly with the seller.......getting the home at a lower price.....because the seller could now take off the 2.5% he was planning on paying the buyer's agent. When this "glitch" is fixed here in New Jersey.....then I am sure that agents will not be as against the "limited service - flat fee listing".

John

on

RE Agents could level the playing field quickly by reducing the rip-off rates of 6% to sell a home. An agent does the same work for a $200K house that he/she does for a $500K house, but makes $6K for the one and $15K for the other. And EACH agent makes that. Marketing costs about $1,000 - give or take a few hundred depending on the agent and the area. The rest is payment for time and paperwork and some incidentals. NO ONE makes that kind of money in sales - ask a car dealer. So it is no wonder that RE Agents are up in arms about people slowing their sweet monopoly! Time for this to stop.

Linda

on

This is in response to John's post on 2/25 as to why full service agents are reluctant to show FSBO's:
As a Realtor I run my services like a business and I get buyer agreements in writing from anyone I represent to prevent the scenario you portray here. The days of showing 30 homes with no written agreement from the buyer ot use you are over. If you don't get the sale then shame on you for not protecting your time and investment. Realtors really need to start acting like business owners in today's market. Also, when you become a Realtor you agree to stand by a code of ethics which means to show properties to your buyers based on their criteria not on the listing type. I have FSBO sellers sign a compensation agreement etc. and have had no problems. Realtors should be working for the buyer - not working for their commission percentage. Just my 2 cents.

Karen

on

Yeah... Yeah... Yeah... I kindly refer to 'flat fee' as data entry clerks. They are not realtors and the big kicker here folks... Once you hand them a check, THEY'VE BEEN PAID! What motivation is there to sell the house?
I'm an absolute believer in change, but MAXIMUM exposure and proper direction for the seller is of utmost importance... Afterall, the objective is to SELL and not just be FOR SALE - The perfect solution is just reducing the commission... The buyer still pays 3% to the selling agent anyway you slice it.
Real Estate is not a game... it's serious business and the public is relying on us to facilitate a sale. How do you do that $400 upfront? If I were a crook, I'd be doing it all day long... wouldn't I?
For you FRANCHISERS who claim to be worth every penny... The brainwashing is working... Keep believing

Mike Kelcher

on

Sometimes a seller doesn't need the whole nine yards, or cannot afford full service. They have few options. Often the seller is upside down in terms of what they owe vs. what the home is worth. Unless they can afford to write out a check at closing, their options are limited.
Historically, a sell in the above scenario simply had to sel lthe home themselves, without the power of the MLS, and therefore got little exposure in terms of making MLS affiliated agents aware of the fact that their home was for sale.
By listing their home in MLS for a flat fee, the homeowner might just be able to afford to move, by making the selling costs manageable.
This of course, means the seller has little or no representation. But, at least he's on MLS. Because MLS requires a listing to have at least "some" compensation to a buyer's agent, the buyer's agent can decide if it's enough.
I've done such listings and always have the seller offer AT LEAST the usual rate of compensation to buyer agents. Usually, it's HIGHER than the going rate because the buyer's agent does more work.
Where's the problem? How is this not in the seller's best interest? Sure, it might be better if he had representation, but not all sellers can afford that.

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